Lana Oconnell
Teachers have a variety of options to pay back student loans, including federal and state-based loan forgiveness programs. The Public Service Loan Forgiveness (PSLF) program is a popular option, offering complete federal loan forgiveness after 120 qualifying payments for teachers working in public service. The Teacher Loan Forgiveness (TLF) program provides up to $17,500 in loan forgiveness for highly qualified teachers in certain subjects or at low-income schools, while Perkins Loan Forgiveness can forgive up to 100% of federal Perkins Loans for full-time teachers at low-income schools or teaching specific subjects. Additionally, there are state and city-based programs, income-driven repayment plans, and refinancing options to consider. With so many choices, teachers can find the best solution for their financial situation.
| Characteristics | Values |
|---|---|
| Loan Forgiveness Amount | Up to $17,500 for certain science, math, and special education teachers |
| Up to $5,000 for other qualifying teachers | |
| Loan Forgiveness Program | Teacher Loan Forgiveness (TLF) |
| Public Service Loan Forgiveness (PSLF) | |
| Perkins Loan Forgiveness | |
| Qualifying Criteria | Full-time teacher at a qualifying school for five complete and consecutive academic years |
| Highly-qualified teacher in certain subjects | |
| Teaching at a low-income school | |
| Direct Subsidized and Unsubsidized Loans | |
| Subsidized and Unsubsidized Federal Stafford Loans | |
| Direct Loans | |
| FFEL Stafford Loans | |
| Federal Perkins Loans | |
| Other Options | Income-driven repayment plan |
| Student loan refinancing with a private lender |
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What You'll Learn
Teacher Loan Forgiveness (TLF)
To qualify for TLF, teachers must have been employed full-time at an eligible school for five complete and consecutive academic years. At least one of those years must have been after the 1997–98 academic year, and the teacher must have been a new borrower on or after October 1, 1998. The eligible loans include Direct Subsidized and Unsubsidized Loans, as well as Subsidized and Unsubsidized Federal Stafford Loans. Direct PLUS Loans, FFEL PLUS Loans, and Perkins Loans are not eligible for forgiveness under TLF.
Under TLF, certain highly qualified special education teachers and secondary mathematics or science teachers can qualify for up to $17,500 in loan forgiveness. Other eligible teachers can receive up to $5,000 in loan forgiveness. To be considered highly qualified, teachers must meet specific requirements set by the Department of Education, including having a bachelor's degree, being state-certified, and demonstrating a high level of competency in their subject area.
It is important to note that any time spent teaching to receive benefits through AmeriCorps or time counted toward PSLF or TEPSLF will not count toward the required five years of teaching for TLF. Additionally, if you have more than $17,500 in student loans and plan to work in public service for at least ten years, you may want to consider PSLF instead of TLF, as there is no cap on the amount of loans that can be forgiven under PSLF.
TLF is just one of several loan forgiveness programs available to teachers, and it is important to research and compare the different options to determine which program best fits your individual circumstances. For example, the Perkins Loan cancellation program forgives up to 100% of Federal Perkins Loans for teachers working full-time at low-income schools or teaching certain subjects. Many states also offer their own loan forgiveness programs, especially for teachers working in high-need areas.
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Public Service Loan Forgiveness (PSLF)
To confirm eligibility for PSLF, individuals can use the PSLF Help Tool. The Federal Student Aid Information Center can also be contacted for specific queries. The PSLF program may be a better option than the Teacher Loan Forgiveness program if an individual has more than $17,500 in student loans and plans to work in public service for at least ten years. This is because the Teacher Loan Forgiveness program only forgives up to $17,500 for certain science, math, and special education teachers, and up to $5,000 for other qualifying teachers.
It is important to note that the PSLF program has been described as a "nightmare" by some, with individuals facing roadblocks and conflicting information. However, others have had their loans forgiven through the program.
To maximize the forgiveness amount, individuals can apply for a forbearance, which means they won't have to make monthly loan payments. However, interest will still accrue. Additionally, borrowers with eligible loans and a balance greater than the PSLF amount they are applying for are not eligible for this type of forbearance.
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Perkins Loan Forgiveness
If you are a teacher with a Perkins Loan, you may be eligible for loan forgiveness. The Teacher Loan Forgiveness (TLF) program offers forgiveness of up to 100% of your Federal Perkins Loan if you teach full-time at a low-income school or teach certain subjects. To qualify for Perkins Loan Forgiveness, you must meet the following requirements:
First, confirm that you have Federal Perkins Loans by checking your StudentAid.gov Dashboard. Next, determine if you meet the eligibility criteria for loan forgiveness. This typically involves teaching full-time at a low-income school or teaching specific subjects, such as mathematics, science, or special education. The requirements may vary depending on the state and the level of education you teach (elementary, middle, or high school). It is important to review the specific guidelines provided by your state's education department or the Federal Student Aid website.
To apply for Perkins Loan Forgiveness, contact your college or university that holds your Perkins Loans and request the application. Submit the completed application to your educational institution for review and approval. It is worth noting that Direct PLUS Loans, FFEL PLUS Loans, and Perkins Loans are not eligible for forgiveness through TLF. Only Direct Subsidized and Unsubsidized Loans, as well as Subsidized and Unsubsidized Federal Stafford Loans, qualify for TLF.
Additionally, there are different loan forgiveness amounts available. If you teach high school math, science, or special education, you may be eligible for up to $17,500 in loan forgiveness. Other qualifying teachers can receive up to $5,000 in loan forgiveness. To maximize your forgiveness amount, you can apply for a TLF forbearance, which allows you to defer monthly loan payments. However, interest will still accrue during this period.
It is important to carefully consider your circumstances before choosing a loan forgiveness program. If you plan to teach or work in public service for at least ten years, the Public Service Loan Forgiveness (PSLF) program may be a better option, as there is no cap on the amount of loans that can be forgiven. Be sure to review all your options and consult with your loan servicer to make an informed decision.
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State and city-based programs
Several state and city-based programs can help teachers pay back their student loans. Here are some of the key programs:
Teacher Loan Forgiveness (TLF) Program
The Teacher Loan Forgiveness (TLF) Program offers loan forgiveness of up to $17,500 for certain science, math, and special education teachers. Other qualifying teachers can receive up to $5,000 in loan forgiveness. To be eligible, teachers must work full-time for five complete and consecutive academic years in a qualifying school, which includes elementary, middle, and high schools serving low-income students. The eligibility criteria for being a "highly qualified teacher" vary depending on the level taught and whether the teacher is new. In general, a highly qualified teacher must have a bachelor's degree, be state-certified, and demonstrate a high level of competency in their subject area.
Perkins Loan Cancellation
The Perkins Loan Cancellation program forgives portions of Perkins Loans in yearly increments. Teachers can have up to 100% of their Perkins Loans forgiven by teaching full-time at a low-income school or teaching certain subjects, including mathematics, science, foreign languages, bilingual education, or special education. The specific requirements may vary, and teachers should contact their college or university holding their Perkins Loans to inquire about the application process.
Public Service Loan Forgiveness (PSLF)
Public Service Loan Forgiveness (PSLF) is a program that forgives the remaining balance on Direct Loans after 120 qualifying payments (equivalent to a minimum of 10 years). Unlike TLF, PSLF does not require teachers to work at low-income schools. Instead, it mandates employment with a qualifying employer, including government organizations at any level (federal, state, local, or tribal) or specific types of nonprofit organizations. Teachers with other types of federal loans, such as Federal Family Education Loans (FFEL) or Federal Perkins Loans, must consolidate to qualify for PSLF.
These are some of the key state and city-based programs available to help teachers repay their student loans. Each program has specific criteria and eligibility requirements, so it is essential for teachers to carefully review the details before applying.
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Income-driven repayment plans
Teacher Loan Forgiveness (TLF)
The Teacher Loan Forgiveness program offers loan forgiveness of up to $17,500 for certain science, math, and special education teachers. Other qualifying teachers can receive up to $5,000 in loan forgiveness. To qualify for TLF, teachers must work full-time for five complete and consecutive academic years at a qualifying school. The school must be an elementary, middle, or high school, or an educational service agency serving low-income students. Additionally, teachers must have Direct Loans or FFEL Stafford Loans issued after October 1, 1998.
Public Service Loan Forgiveness (PSLF)
The PSLF program is an alternative to TLF and may be a better option for teachers planning to work in public service for at least ten years. Unlike TLF, there is no cap on the amount of loan forgiveness under PSLF. However, the five-year period of service for TLF will not count toward PSLF. Teachers can use the PSLF Help Tool to confirm their eligibility and check if their previous payments qualify.
Perkins Loan Cancellation
Perkins Loan Cancellation specifically applies to Federal Perkins Loans. Teachers who work full-time at low-income schools or teach certain subjects can have up to 100% of their Perkins Loans canceled. The cancellation is done in increments of 15% per year for the first and second years of service, including the interest accrued during those years. To apply for Perkins Loan Cancellation, contact your college or university that holds your Perkins Loans and submit the application.
Loan Forbearance
Teachers can also apply for TLF forbearance, which allows them to temporarily stop making monthly loan payments. This can help maximize the loan forgiveness amount. However, it is important to note that interest will still accrue during the forbearance period. Forbearance is not applicable if the borrower's loan balance is greater than the TLF amount they are applying for.
It is important to carefully consider all repayment options and seek advice from a federal loan servicer to determine the best plan for your specific situation.
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Frequently asked questions
The Teacher Loan Forgiveness (TLF) Program is a federal initiative that provides $5,000 in loan forgiveness for teachers who have completed five consecutive academic years in an eligible school. Highly qualified math, science, or special education teachers can receive up to $17,500 in loan forgiveness.
To qualify for the TLF Program, you must teach full-time for five consecutive years at a qualifying low-income elementary or secondary school. Additionally, you must have eligible loans, such as Direct Subsidized and Unsubsidized Loans, and meet the requirements set by the Department of Education to be considered a highly qualified teacher.
Public Service Loan Forgiveness (PSLF) is a program that offers complete federal student loan forgiveness after 120 qualifying payments for those working in public service, including teachers. Unlike TLF, PSLF does not require you to teach at a qualifying Title 1 school, and any worker at a school can qualify.
Aside from TLF and PSLF, there are numerous state and city-based programs that offer teacher loan forgiveness. Additionally, you can consider an income-driven repayment plan, which sets your monthly payment as a percentage of your discretionary income, or student loan refinancing with a private lender if you have strong credit and a steady income.
